Community bank marks 1st profitable year in 2009

TOWN OF WALLKILL — Greater Hudson Bank reported net income of $670,000, or 7 cents per share, for 2009, making it the first profitable year in the bank's seven-year history.

Michael Levensohn

TOWN OF WALLKILL — Greater Hudson Bank reported net income of $670,000, or 7 cents per share, for 2009, making it the first profitable year in the bank's seven-year history.

In 2008, the former Community Bank of Orange lost $1.9 million, or 46 cents per share.

"We saw tremendous growth in deposits and in our loans," said President and CEO Eric Wiggins. "A lot of people are upset with the larger institutions. People have migrated back to the community banks."

Wiggins said the bank's Rockland County branch, which opened in late 2008, has already attracted more than $60 million in deposits. Older offices in the Town of Wallkill and Warwick have also seen significant growth.

Overall, the bank's deposits grew more than 90 percent last year, while loans increased more than 80 percent. Greater Hudson's condition has improved dramatically since a group of former Union State Bank insiders bought a majority interest in late 2008 and pumped $23.4 million in capital into the bank.

For the fourth quarter of 2009, the bank reported a profit of $922,000, compared to a loss of $1.2 million during the corresponding quarter of 2008.

The fourth-quarter and full-year numbers were skewed somewhat by unusual events. In 2008, there were one-time costs associated with the recapitalization of the bank. Last year, the bank took advantage of a $600,000 tax benefit that was accumulated during the years when it lost money.

Wiggins said the bank plans to open its fourth office this spring in the White Plains area.

Greater Hudson Bank's stock, which trades over the counter, has sold recently for about $4.25 a share.